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Finance Ministers of India

Pranab Kumar Mukherjee
(1982-1985, Feb 2009-May 2009, May 2009-Continuing)

Pranab Kumar Mukherjee is a prominent leader of India National Congress. He has...
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IndiaInfoline arrow Budget arrow Budget Highlights

Highlights of Budget FY12

India Infoline News Service / 11:59 am , Feb 28, 2011

Mukherjee says economy resilient to external, local shocks

The Finance Minister Pranab Mukherjee has started presenting the Union Budget for the fiscal year 2011-12 in the parliament today.

The following are some of the key highlights of the Railway Budget:

  • Critical institutional reforms set pace for double-digit growth

  • Scaled up flow of resources infuses dynamism in rural economy

  • GDP estimated to have grown at 8.6% in 2010-11

  • Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year

  • Indian economy expected to grow at 9%  in 2011-12.

  • Five-fold strategy to deal with black money.   Group of Ministers to suggest ways for tackling corruption

  • Public Debt Management Agency of India Bill to come up next financial year

  • Direct Tax Code (DTC) to be effective from April 01, 2012

  • Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted

  • Rs.40,000 crore to be raised through disinvestment in 2011-12

  • FDI policy to be liberalized further

  • SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement

  • FII limit for investment in corporate bonds in infrastructure sector raised

  • Additional banking license to private sector players proposed

  • Rs.6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks

  • Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR

  • India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI

  • Rs. 500 crore Women SHG Development Fund to be created

  • Micro Small and Medium Enterprises  MSME gets boost as Rs. 5000 crore provided to SIDBI  and Rs.3000 crore to NABARD

  • Existing housing loan limit enhanced to Rs.25 lakh for dwelling units

  • Provision under Rural housing Fund enhanced to Rs.3000 crore

  • Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore

  • Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas

  • Rs. 300 crore vegetable initiative to achieve competitive prices

  • Rs.300 crore to promote higher production of nutri-cereals

  • Rs.300 crore to promote animal based protein

  • Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages

  • Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore

  • Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12

  • 15 more mega food parks during 2011-12

  • National food security bill to be introduced this year

  • Capital investment in storage capacity to be eligible for viability gap funding

  • 23.3% increase in allocation for infrastructure

  • Tax-free bonds of Rs.30,000 crore proposed by government undertakings

  • Environmental concerns relating to infrastructure projects to  be considered  by Group of Ministers

  • National Mission for Hybrid and Electric Vehicles to be launched

  • 7 Mega clusters for leather products to be set up

  • Allocation for social sector increased by 17% amounting to 36.4% of total plan allocation

  • Bharat Nirman allocation increased by Rs.10,000 crore

  • Rural broadband connectivity to all 2.5 lakh panchayats in three years.

  • Bill to amend Indian Stamp Act to introduce.   Rs.300 crore scheme for modernization stamp and registration administration

  • Significant increase in remuneration of Angawadi workers  and helpers

  • Allocation for education increased by24%.  Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%

  • 1500 institute of higher learning to be  connected by March 2012 with Knowledge Knowledge Network.

  • National Innovation Council set up.   Additional Rs.500 crore for National Skill Development Fund

  • Plan allocation for health stepped up by20%

  • Indira Gandhi National Old Age Pension Scheme liberalized further

  • Rs.200 crore for Green India Mission

  • Rs.200 crore for cleaning of rivers

  • Rs.8000 crore provided for development needs of J&K

  • 10 lakhs Aadhaar(UID)  numbers to be generated everyday from 1st October

  • Fiscal deficit kept at 4.6% of GDP for 2011-12

  • Income Tax exemption limit for general category in individual tax payers enhanced from Rs.1,60,000 to Rs.1,80,000

  • Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get Rs.5,00,000 IT exemption

  • Surcharge on corporate lowered to 5%
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